Kill the bailout: Illegal immigration and the mortgage mess
My syndicated column today tackles the bailout angle no one wants to talk about: Open borders and the home loan debacle. You’ve heard a lot about Fannie/Freddie and the minority lending shakedowns, but you haven’t heard most commentators/analysts on either the left or the right talk about the massive illegal alien mortgage racket — a topic I’ve reported on for the past five years. That’s because fault lies at the feet of the crime-enabling banking industry and the ethnic lobbyists and the illegal alien-enabling Bush administration.
They screwed us. Now, they want us to fork over a trillion dollars.
Screw them.
Kill this bailout.
And I second Mark Krikorian: Credit is not a civil right. It’s not a civil right for illegal aliens. For foreign banks. For American banks. For anyone. The bailout proposal, as I noted earlier, now includes student loans and auto loan debt. Will our tax dollars next cover foreign student loan debts? Illegal alien in-state discounted college tuition debt? Where and when will it end?
Oh, but pardon me. I’m just being, you know, an ideological purist.
***
Illegal immigration and the mortgage mess
by Michelle Malkin
Creators Syndicate
Copyright 2008
The Mother of All Bailouts has many fathers. As panicked politicians prepare to fork over a trillion dollars in taxpayer funding to rescue the financial industry, they’ve fingered regulation, deregulation, Fannie Mae and Freddie Mac, the Community Reinvestment Act, Jimmy Carter, Bill Clinton, both Bushes, greedy banks, greedy borrowers, greedy short-sellers, and minority home ownership mau-mauers (can’t call ‘em greedy, that would be racist) for blame.
But there’s one giant paternal elephant in the room that has slipped notice: How illegal immigration, crime-enabling banks, and open-borders Bush policies fueled the mortgage crisis.
It’s no coincidence that most of the areas hardest hit by the foreclosure wave – Loudon County, Virginia, California’s Inland Empire, Stockton, San Joaquin Valley, Las Vegas, and Phoenix, for starters — also happen to be some of the nation’s largest illegal alien sanctuaries. Half of the mortgages to Hispanics are subprime (the accursed species of loan to borrowers with the shadiest credit histories). A quarter of all those subprime loans are in default and foreclosure.
Regional reports across the country have decried the subprime meltdown’s impact on illegal immigrant “victims.” A July report showed that in seven of the 10 metro areas with the highest foreclosure rates, Hispanics represented at least one-third of the population; in two of those areas – Merced and Salinas-Monterey, Calif. – Hispanics comprised half the population. The amnesty-promoting National Council of La Raza and its Development Fund have received millions in federal funds to “counsel” their constituents on obtaining mortgages with little to no money down; the group almost succeeded in attaching a $10 million earmark for itself in one of the housing bills past this spring.
For the last five years, I’ve reported on the rapidly expanding illegal alien home loan racket. The top banks clamoring for their handouts as their profits plummet, led by Wachovia and Bank of America, launched aggressive campaigns to woo illegal alien homebuyers. The quasi-governmental Wisconsin Housing and Economic Development Authority jumped in to guarantee home loans to illegal immigrants. The Washington Post noted, almost as an afterthought in a 2005 report: “Hispanics, the nation’s fastest-growing major ethnic or racial group, have been courted aggressively by real estate agents, mortgage brokers and programs for first-time buyers that offer help with closing costs. Ads proclaim: “Sin verificacion de ingresos ! Sin verificacion de documento !” — which loosely translates as, ‘Income tax forms are not required, nor are immigration papers.’”
In addition, fraudsters have engaged in massive house-flipping rings using illegal aliens as straw buyers. Among many examples cited by the FBI: a conspiracy in Las Vegas involving a former Nevada First Residential Mortgage Company branch manager who directed loan officers and processors in the origination of 233 fraudulent Federal Housing Authority loans valued at over $25 million. The defrauders manufactured and submitted false employment and income documentation for borrowers; most were illegal immigrants from Mexico. To date, the FBI reported, “58 loans with a total value of $6.2 million have gone into default, with a loss to the Housing and Urban Development Department of over $1.9 million.”
It’s the tip of the iceberg. Thanks to lax Bush administration-approved policies allowing illegal aliens to use “matricula consular cards” and taxpayer identification numbers to open bank accounts, more forms of mortgage fraud have burgeoned. Moneylenders still have no access to a verification system to check Social Security numbers before approving loans. In an interview about rampant illegal alien home loan fraud, a spokeswoman for the U.S. General Accounting Office told me five years ago:
“[C]onsidering the size of Los Angeles, New York, Chicago, Houston, and other large cities throughout the United States known to be inundated with illegal aliens, I don’t think the federal government is willing to expose this problem for financial reasons as well as for fear of political repercussions.”
Chickens coming home to roost. And law-abiding, responsible taxpayers are going to pay for it.
See what others have said
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Trackbacks
- How illegal aliens, George Bush, RINOs and Democrats have destroyed our nation | The TIW Blog
- The bailout turns out not to be utopia « Full Metal Cynic
- BizzyBlog » Things I’d Lie to Post About Today ….. (092408, Morning)
- miamipress.net | miamipress.net
- 3 Cheers for Illegal Immigration! - US Message Board
- The Other McCain: Pull the plug
- The Mahablog » Good News/Bad News
- Kill the bailout: Illegal immigration and the mortgage mess « Thoughts Of A Conservative Christian
- Jules Crittenden » So Complicated …
- The Financial Mess « Above My Pay Grade!
- southchild » Blog Archive » Kill the Bill
- Swamp Hermit’s *QUICK* Bits « The Swamp Hermit’s Report
- Illegal Immigration And School Expenses: Two Components Of Our Current Financial Crisis | novatownhall blog
- Kick the Anthill » The Bottomless Bailout, Immigration Edition
- Kill The Bailout ASAP « Mcnorman’s Weblog
- A new “Ellis Island” could help « Buckeye RINO
- My obligatory Stop the Bailout and Cuff Dodd post. « Illiberal Virtuosity
- Wacky Wednesday: Midday Report — McCain’s Senate Office Says ‘No’ PLUS Other Key Bailout News! « Pocket Change - Now Lint Free!
- Why not solve the mortgage crisis by cutting property taxes? | blogs4God
- Wall Street–Yes to Moral Hazard, No more bailouts ever! | THE TYGRRRR EXPRESS
- American Bankers Association Balks at Bailout | American Sentinel
- OpenMarket.org » Archive » Bailout Bills, Illegal Aliens, and Weird Lending Practices
- The bailout bill - more of your money to the greedy feds « Breaking Point
- Kill the Billout « Kevin’s Korner
- Michelle Malkin says: Kill the Bailout | HALFWAY TO CONCORD
- The John and Ken Show » Today’s News
- The John and Ken Show » Today’s News
- Illegal immigration and the mortgage mess « Reformation Faith Today
- Kill the bailout: Illegal immigration and the mortgage mess | OPPOSE THIS BAILOUT SIGN PETITION NOW
- There's My Two Cents
- Random-American » Bailouts and baseballs through windows
- Stock market investment blog » Blog Archive » Scapegoat for American economic woes?
- It’s True! We ARE Scr-w’d 2008! « Gunservatively!
- The Saloon dot net
- third world county » “Money, Money, Money… it’s a rich man’s world…”
- Illegal Aliens and Mortgages « The Sisyphus Files
- Good ‘ol Boy Economy Wreckers « ULTIMATE TRUTH
- Judicious Asininity
- What Lies Beneath...
- CWA-NJ Conservatives with Attitude! » Blog Archive » Bailout Or A Handout?
- GOPMom Note: you heard it here first
- $700 Bailout: See no evil. Hear no evil. Speak no evil. « Republican Party of Jefferson County, TN
- Michelle Malkin » More on the diversity racket and the home loan debacle
- ‘Zactly! « Curtis Lowe
- Illegal Immigration and Mortgage Fraud « Utah Rattler
- Stop The Bailout: The American Elites’ Bum Rush of The American People–No Sale! « Pronk Palisades
- Obama–ACORN–CRA–Congress–Democratic Party–Fannie Mae–Freddie Mac–Bailout–Socialism– Just Say No! « Pronk Palisades
- Michelle Malkin » Kill the bailout: Call your GOP representative; Update: the deal details trickle out; No deal tonight; Paulson and the Dems bawl
- Kill the Bill
- I’m with Ralph Nader :: all-encompassingly :: blog
- Another Failed Nativist Sequel - Illegal Aliens Caused Financial Collapse! | No Borders and Binaries
- MzEllen & Co. » Blog Archive » lunes linkage - 9/29/2008
- Racism & the bailout « Apparatchicks
- BLACK VELVET BRUCE LI : Why The Bailout Idea Sucks
- Illegal Immigration Video: Illegal Aliens and the Bailout | DBKP - The Worldwide Leader in Weird
- Conservatives’ Bailout Blame Game
- WHAT REALLY HAPPENED « Texas Hold ‘Em Blogger
- The Blame Game
- One Utah » Blog Archive » Republicans: Don’t Blame Us, We Just Run the Government
- Bitch Spot » Blog Archive » The Origins of the Mortgage Mess
- Crazy Talk
- Bankkrisen: interessant artikel af Michelle Malkin « Veritas Universalis
- US Immigrants Blog | AzulaySeiden Law Group » Mortgage Crisis not Out of Status Immigrants Fault
- allthehypocrisy.com » Blog Archive » Blame the poor
- Innvandrerne har skylda i finanskrisen « Astrid Meland
- Hey, Coot, What’s the “Wisdom of the Week”? « A Disgruntled Old Coot
- Countrywide’s Angelo Mozilo: He Warned Us—But Washington Didn’t Want To Know « Locust blog
- Michelle Malkin » Obamacare for illegal aliens: A brief history
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Categories: 2008 campaign, Immigration, Subprime crisis
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» Quote of the Day [Darleen Click]
Yet another example of how illegal immigration is destroying our country from the inside out.
I would love to hear what Gov. Palin has to say about this.
This is sooo above my pay grade. It just seems that some form of multiculturalism/political correctness has run amok.
How can we start a national unified tax revolt to get the message across to these public servant buffoons that we’re not going to take their BS anymore?
A surgically precise expose’ on the stink that is our symbiotic legislative/banking system. I feel sick….
I emailed them about that very thing- I have yet to hear anything. I really am trying to view her objectively- I don’t want her to be too good to be true.
Having said that and after reading her book, she knows where she gets her paycheck- not from the friggin treasury, but from the taxpayer. And her actions as a rep in Alaska have totally backed her up in supporting the taxpayer. So we’ll see. One of the good things about small town minded folks is they remember their roots.
But this whole mess that we’re in is infuriating and is scarying the daylights out of me- I cannot beleive that they allowed us to get to this point. They have acted like this is our first bubble to pop. As if we haven’t had them before.
I did call my congressman last night. What else can I- one citizen- do to voice my opposition? I’m an activist, I go to DC to support the troops, Hell- we baked cookies this weekend to send overseas. But this huge mess is nightmarish. I feel like I want to do something, but short of marching to the capitol steps and screaming, (Which I will do!!) I don’t know what else.
Add to the insult that these vermin want E-Verify to expire!
I too don’t know what to think about all of this…
What benifits will the bailout do for the US?
What are the downsides to NOT doing the bailout?
Seriously. Can anyone answer this?
Well I have a reasonable net worth and I am not that far from retirement but there is too much moral hazard in a bailout. American assets are not worth zero. Even most American mortgages are worth more than zero. The people who need to experience the pain are the people who overextended themselves. My house is paid for and with my own money. Why should I be financing a house for someone who can’t pay for one?
If this ‘bail out’ goes through; and they ever get to the point where they see which delinquent ‘home owners’ get saved; You know there will be ’social and ethnic’ criteria.
$700Billion here, $30Billion “plowed into European banks”(according to Yahoo!)
This entire fiasco sounds like foreign aid to me, folks. I’m against it, unless there is a very clear “exit strategy” and IF there is a very, very clear definition of WHEN that exit will be made.
oops…misworded that a bit…
I’m against the bail-out, but if it will be passed anyway….I demand the ‘exit strategy’, etc.
But they don’t consult me.
I have said all along that illegals were the reason for this massive debt.
Now if we all refuse to pay taxes……said this last year……that should send a LOUD KMA message to Washington.
Oh. We might go to prison? I doubt it.
If even 25% of taxpayers refuse, there’s no way. They cannot even find illegals so why worry.
Taxation w/out representation – folks!
One more point.
The EXIT strategy should be SEND ILLEGALS HOME.
Now if we all refuse to pay taxes……said this last year……that should send a LOUD KMA message to Washington.
What has McCain decided to do?
Saw on Shep Smith’s show an analogy… I couldn’t remember all of it, so I did a conversion. If dollars were seconds, how much time is it (because I can’t wrap my head around a trillion dollars!)? They want us to fork over almost a trillion dollars to bail out this mess NOT created by the majority of Americans who are fiscally responsible. So, if dollars were seconds:
DAYS: 11,574,074.07
WEEKS: 1,653,439.15
YEARS: 31,709.79
I guess it’s only a bit of perspective- I don’t even understand 31 thousand years. I mean, Jesus was here just a couple thousand ago, right?
“I’m from the Government and here to help….. you pack.”
T.H.E.Y.W.I.L.L.N.O.T.G.E.T.M.Y.M.O.N.E.Y.
Yesterday Henry Paulson said:”When you ask about the taxpayers being on the hook — guess what: They’re already on the hook.”
How can we stop the bleeding?
As the great Ayn Rand said (I’m paraphrasing) if the cost of a crime does not fall upon the guilty, it will fall on the innocent.
The road to hell is paved with good intentions. What could be more obvious? It is now clear why the Bush Administration was so listless and weak in its response to the crisis which it and every sentient being in the country saw coming years ago. Always looming over him a vision of transcendent and unlimited power — was Bush’s GD Mexican Nanny. What this man has been permitted to do to this country, disarming conservatives and placating liberals as he went, is simply unconscionable. Personally, I hope the democrats do go after him once they seize power and pursue his lame a$$ forever. It will be for the wrong reasons, granted, but it will be a kind of justice after all.
No credit. The credit markets freeze. A Great Depression would be the least of it.
That’s assuming they do nothing.
However, all they have to do is suspend the mark to market rule. No big bailout. No $700,000,000,000.00. The rule is forcing banks to sell into a market that isn’t a market. A market is ‘willing buyer and willing seller.’ This so-called mortgage ‘market’ has become ‘terrified buyer and forced seller.’
That blind, “ideologically pure” rule is destroying us.
And of course, this bail out won’t stop at $700 billion. Remember when the Congress passed the prescription drug plan (Medicare Part D)? They said it would only cost $400 billion over 10 years.
Literally a couple of days after they voted on the bill they obviously never read they did a big “oops” and said they made a “mistake” and it would actually cost $500 billion over 10 years. Nobody knows how much this is going to cost. Of course, there is no effective way to meaningfully audit the Federal Government so who cares about costs?
Well, guess what? Congress hasn’t read THIS bill because it HASN’T BEEN WRITTEN YET. IN fact they won’t “finish” writing it until two days after Congress votes on it. And nobody will know what was “in the bill” that hadn’t been written because nobody will have ever read the bill that hadn’t been written before they voted on it.
Close the borders, deport illegals. Drill Here, Drill Now. Vote 3rd party. The Dems and Republicans are a bunch of crooks looking out for their crooked buddies at OUR expense.
Yeah, this is beyond outrageous!
BTW, can I add my mortgage and MasterCard bills to the bailout pile?
If we could rid the country of the ILLEGAL ALIENS, a great deal of our problems would be solved. We can deal with what is left.
If we were to stop BAILING OUT the inner cities, they might also clean themselves up.
This is what happens when politicians think they can give OUR money to the ones unwilling to earn their own money.
It’s funny that this was all caused by the flawed policies/corruption of the government and the idiocy of some major businesses, yet the American taxpayer – the only people totally blameless in this whole mess – are supposed to foot the bill.
This MM post is almost literally “cut off your nose to spite your face”. Who benefits from the bailout is not illegals who will lose their homes. It’s rich bankers who will have their losses covered by Uncle Sam.
Bush and Paulson say that we are headed for a great depression if we don’t shore up our finance sector. You’ve trusted those heckuvajobbers before, why not now?
Go Michelle, GO!
I agree! Its time for our lawmakers to grow a set of brass ones and refuse to be emotionally blackmailed.
See how expensive liberalism can be?
The fearmongerers haven’t made their case. All they say is that if we don’t fork over the $1 Trilliion to them, no questions asked (clean bill), then the sky will fall. I don’t buy it. Unless and until they can show me how they got into this mess, why they got into this mess, and how they can get out of this mess with Just $1 Trillion , and why it will never happen again…I will never give my consent or my money to them.
If they pass this bill without doing those things I will never pay another dime in federal taxes again. This is government corruption and contempt for the citizens.
I’ve been seeing this same thing in my neighborhood in Gwinnett County, GA. A few years ago, a home up the street from mine, all Hispanic males, were running a prostitution ring from the converted garage. They moved out, another group of males moved in, no sign-up for rent or anything.
Now, across the street from me, one home is up for rent, the other is up for sale. They were there, they were gone.
However, next door to me the family couldn’t cut it here so they packed up and moved back to Guatemala two weeks ago. No for sale sign, they just left.
Times just these 4 examples by thousands. There’s our mortgage meltdown.
No money for bailouts.
Great editorial, Michelle! If only I could force my senators to read it. sigh…..
Nevertheless, I won’t stop trying to enlighten them in my emails!
Oh, by the way, my Congressman, Rep. John Linder, is totally on our side. He even agrees that we should repeal the Community Reinvestment Act (CRA). Not that it will ever happen, of course.
HOW can you put this in perspective?
It has been 7 years since we were attacked here,on our home soil.Our President and Congress has yet to CLOSE OUR BORDERS! Why would they BLATANTLY DO THIS… To Americans?
Every day more Illegals enter this country, and EVERYDAY an American dies as a direct result of our Goverments Inaction. I’m sorry… I guess I misspoke there…
THEY DO LET THEM PURCHASE A HOME-GET WELFARE-GET FREE HEALTHCARE-GET FREE EDUCATION…
God Bless America huh?
Michelle,
your column is carried every Saturday in my local paper, the Reading, PA Eagle. I’ll be very curious to see if they carry THIS column, though; Reading’s Mayor Tom McMahon has made his city into a virtual sanctuary city – he just LOVES illegals!
Find ‘em here, kick ‘em out now, quit paying for ‘em forever!
Thanks Michelle for keeping this whole thing in the limelight, I’ve been so PO’d, I had ignored the illegal connection.
The lawmakers/con artists are trying to screw all of us who have acted responsibly and lived within our means.
I’m tired of reading sob stories about people whose income was $30K/yr who now can’t afford the mortgage on their $300K house, or the people who bought 5 houses and rented them out but now their ARMs make it impossible for them to pay.
NO BAILOUT! And vote ALL the crapweasels out! If we the American people don’t stand up to the crooks we deserve what we get.
What I’ve failed to hear any politician or almost any “talking head” say is the root cause of this “crisis”. Congress mandated that loans be made and then enabled that through very loose money from the FED. Of course, then with mandates and enabling, greed took over.
Well, there are a couple houses in our neighborhood that were full of non English speaking families living in it..
now they are gone.. but of course the yard adn the home is now trashed.
I say KILL THE BILL, too.
Do not pee down my back and tell me it’s raining.
KILL THE BILL.
Because we aren’t blind sheep like the left.
BTW If this passes, there is NO WAY the next president can avoid rasing taxes. What is happening is 30 years of bills are all coming due. The way out of this is to increase payments to pay down the debt and CUT SPENDING It will take deep painfull cuts in all areas of government. There is no way Obama will do this. McCain might.
Thank you Michelle for telling the truth. No one else has the guts to do that anymore. It’s been plainly obvious to anyone willing to look that the corrosive effects of millions ignoring our laws has permeated our entire system. Giving illegal aliens home loans when they are ILLEGAL ALIENS is INSANITY!
Obama wants to give money to people so they can afford thier mortgage payments. Thats right. He would have the government paying thier mortgage for them. Why am I making my payments again?
Suspend ALL foreign aid for one year.
That’s $700 Billion.
Make that $700 Billion available as loans to keep the credit markets open while the banks lick their wounds from eating the losses they brought upon themselves. And people who can’t afford the home they bought or leveraged them to the skies… move to a rented apartment.
Home prices drop to realistic level and REAL first time home buyers can buy a home they can actually afford.
None of the $700 billion gets used as bailouts. If a bank needs a loan, it’s to be collateralized and repaid.
Suspending All foreign aid is a helluvalot easier than stealing $700 billion from taxpayers.
.
DO OUR POLITICIANS EVEN CARE HOW ANGRY WE ARE.
I THINK THAT IS WHAT REALLY MAKES ME ANGRY.
THEY DON’T CARE
.
It’s too bad we can’t duplicate Sheriff Joe in AZ. He’s rounded up more illegals than anyone in the country. His opponent would look the other way. I’m campaigning hard for him right now.
In other news, Florida Rep. Allen Boyd’s son was arrested in Arizona last Sunday and charged with human smuggling after K-9 dogs allegedly sniffed out individuals hiding in the bed of his truck. Did you see that on the news? Probably not.
Now here is a thought, looking at YOU ceos of freddy and fannie, lemans aig…
swmbo, they really don’t care. I honestly don’t think they do. After 30 years of spending on credit, all they seem to care about is appointing blame.
And someone will no doubt say..
“But you can’t just stop all foreign aid! What will those other countries do?”
Bull $&%#… what will WE do after being mugged for $1 Trillion?
Those countries can get by for a year. If they need cash, let their own banks and gov’ts tide them over for 12 months.
Who here hasn’t had to deal with bad finances for 12 months? Last I checked it was call personal responsibility.
We don’t have a big illegial problem here in Oklahoma anymore because we have congressmen and senators that actually listen to their constinuents and vote accordingly. They are also opposed to this bill. Outside of that, what can I do, what can any of us do short of protesting in the streets to communicate how furious we finally are?
“illegal” duh
This is the danger, if they don’t start listening, eventualy some hot head will start shooting. Then things start getting really bad.
Is there anyone who trusts Obama The Reticent to handle this economic meltdown, caused by Jim Johnson and Franklin Raines, advisers to the Obama/Biden campaign?
Now, that’s taking matters into your own hands!!
Being from Oklahoma (Hey Neighbor!) and livin in New York, I can say that it’s one thing that makes me miss it most. Coburn and Inhofe are good guys. I write them all the time- and I get responses that aren’t form letters! And how funny is it that when the Okies in flyover country decided to start tackling the problem, there weren’t even massive raids- they all moved away. My father was telling me about it- he lives in Tulsa. The day labor centers to the grocery stores to the guys on the side of the highway begging for change- they moved away. Jobs opened up, as well as other opportunities. Crime went down- as well as the ever present meth problem. And it happened SIMPLY because the congressmen in Oklahoma did what their constituents wanted. They aren’t totally in the clear with some things, but at least Okies are well represented. Too bad these liberal wall street hacks that represent us here in NY can’t take lesson.
Can anyone believe they have the audacity to do this! We have lost all control in this “democratic, free” society. The only thing about this country that is free, is being able to worship whatever religion you want. While we are trying to make Iraq a democratic society, ours is being flushed down the toilet. I was a Bush supporter, but since he has made his opinions known on his new “world order” and immigration and now this? AND congress – THOW THEM OUT!
MM, you are exactly right, Bush’s open-borders policy greatly contributed to this financial crisis. Yet let’s not let the entire Democrat Party and a good many Republicans in Congress who have supported that policy off the hook.
There is plenty of responsibility to afix for how we got here. We should also remember that the Community Reinvestment Act was amended (first passed in 1977) after a December 8, 1993 news conference announced the Clinton adminstration would alter the Act. It was the Democrats that forced banks to make risky loans despite testimony against the changes by all but one bank president. Foolishly, McCain recently stated that he might consider Andrew Cuomo to head the SEC. In 2000, Raines publicly stated the changes HUD Secretary Cuomo administratively made would force Fannie Mae and Freddie Mac to take on a far greater share of sub-prime loans.
I agree, this bailout needs stopped yet it will not be without a huge public outcry. Few in Congress will be honest with us so we need to inform the public that those legislating the “fix” are the ones who broke it in the first place. Every new piece of legislation needs poured over and every speaker’s words need compared to the Congressional record and their previous public statements. No slack; let the chips fall where they may.
sonofdy, I agree they just plain don’t care. When I was a kid, my parents were always doing ’something for my own good’. Was hoping that attitude would end after I grew up. geeeeezzzzzz
I too am afraid that the bullets will start to fly. That is not the way to clean things up but it might serve as a wake up call to the bad guys. I would rather just not pay my taxes to show my displeasure.
What is clear to me is that if washington DC does not take control of the debt and spending, this country will be bankrupt sooner rather than later. This bail out idea is only one sign that this is coming, and will only speed up the bankruptcy. ANY other entity who spends like this government has for the last 30 years would have been gone years ago.
In late 2007, months after the mortgage crisis had become public knowledge, Bank of America and Country Wide were STILL advertising mortgages on MSN.com with, “No Social Security Number Required.”
Financial insanity?
Nope.
Fannie Mae and Freddie Mac bought every mortgage that Bank of America and Country Wide originated, no matter how risky.
Well I agree but the hotheads are all it takes.
BTW Guys- they aren’t answering the switchboard at the Capitol…
Wow MM, what a column!!! This has been the 800 pound GORILLA in the room here in PHOENIX for a long time… As a leader in SANCTUARY CITIES, our mortgage foreclosure rate is through the ceiling… When covered by the local RAG, never a mention of ILLEGAL IMMIGRANT in connection with foreclosures… We have whole sections of neighborhoods with houses boarded up… All blamed on OUR POOR ECONOMY, or the non-existant RECESSION… Again we have school districts reporting a drop in student enrollment, never to mention the vast amount of ILLEGALS who have opted to leave Arizona, rather then risk our EMPLOYER SANCTIONS LAW… Again MM, this is a MAJOR TOPIC that must be addressed if we are to get out of this BAILOUT BOONDOGGLE… Thank you for starting the BALL ROLLING…
I work at a bank, and every time I was assigned to do some that benefited illegals, it always, always took longer than normal.
I fought tooth and nail against the Matricula, Spanish versions of printed materials, free wire transfers to Mexico and of course, mortgages…however, the appeasers are embedded too deeply into the Retail (Personal) side of banking.
Just checked my American Heritage Dictionary and the word “RENT” is still in there.
In addition to “It’s the economy, stupid,” we need to add, “It’s about RENTING, stupid”. Do that, save, get your green card or citizenship, then own. $400,000 starter homes. Something for nothing. Other People’s Money (OPM). The “values” of some are just NOT!
I am glad, Michelle, that you are addressing this angle. This is really the California Housing fiasco, which bled over to Nevada and Arizona.
Cause:
Too High of a demand.
Caused by:
People in the market who should not have been in the market.
Because of:
Easy credit
Poor risk management
No LOCAL oversite – hear that Swartz..
No management of appraisers
Banks with unlimited access to funds
Too low of interest rates(Greenspan)
States using Fannie Mae an Urban Renewal program.
Illegal aliens getting mortgage loans, rather than being sent back where they came from.
September 24th, 2008 at 8:14 am, almiller said:
Well I have a reasonable net worth and I am not that far from retirement but there is too much moral hazard in a bailout. American assets are not worth zero. Even most American mortgages are worth more than zero. The people who need to experience the pain are the people who overextended themselves. My house is paid for and with my own money. Why should I be financing a house for someone who can’t pay for one?
Well said.I approve this message.
#56 JennyBea, I tried calling too. I guess no one is home.
Revolution now.
Off subject, but I guess it goes to raising ones voice does have some effect:
This was taken from the Fox web page
I want to see the real estate transactions of every single person in Congress over the last 6 years. They created the real estate boom using government policy that created cheap money and pushed prices through the roof from the bottom up. WHO lined their pockets and got out just in time before the floor dropped out from under it? (anyone remember Terry McCullife and Global Crossing?) It looks to me like the only difference between our elected representatives and Michael Milikan is that Milikan wasn’t able to fleece taxpayers.
let me see if I got this straight
1) There is 5 in my family
2) My 401k might, just might go up a couple of thousand if the Bailout goes through
3) It will cost every single person in the USA $2300 for the bailout
4) CEO’s have/will get millions of that
5) It will cost my family $11,500.00 -then deduct the ( let’s be generous) $4,000 in our 401k increase, if ( big if) the stocks in my 401k go up to where they were just a few months ago, leaving us a healthy decline of even more to give the CEO’s million
Pass
But there’s the rub. There are millions of people who did NOT ‘overextend themselves’ by any reasonable measure, but who’re going to lose their jobs and their homes anyway if nothing is done about this situation.
You can’t beat something with nothing. The public knows there is a crisis. They know the economy is sliding into The Pit. If those of us opposing this bill don’t come together on some kind of alternative, the bailout will get enacted.
This is NOT a rerun of the amnesty bill. We can’t stop it without an alternative. Thinking we can will end in defeat.
So it’s time we stop complaining about the crisis, and we start questioning the mark to market rule that’s forcing the banks to sell mortgage securities they don’t want to sell.
Sorry, that’s “Milken” not “Miliken”
Before you go to the Polls in Nov. do just a little research on who you are voting for.
Just a WILD GUESS… But the people running for office, I BET just happen to be Attorneys?
Ask yourself… HOW MANY ATTORNEYS DO WE NEED IN WASHINGTON DC?
Would it not make sense to elect maybe some ACCOUNTANTS? TEACHERS? Hell, PLUMBERS!!!!
Common Sense Actions start at Home.
What’s your basis for believing that that will happen? Our economy does NOT turn on the real estate market.
How about a hockey mom?
fearmongering. no one knows what would happen if we did nothing. but the markets haven’t collapsed.
its the ideologically impure mix of socialism and capitalism that has gotten us into this mess.
It turns on the credit market. Tighter money means fewer cars get sold. Tighter money means less furniture gets bought. And so on. Fewer boats. fewer airplanes. etc etc
And that means more jobs losses. Which means less money to buy with. It’s a vicious downward spiral.
And money is locking up. ‘Tight’ is not the word for it.
And, btw, real estate is important all by itself.
YOU may be happy with anyone who owes anything getting busted. Most people aren’t. They’ll back the bailout if you don’t give them an alternative.
Lawyers shouldn’t be allowed to ever become legislators or judges. The psychology and philosophy necessary to do the jobs responsibly are complete contrary to eachother.
A lawyer’s JOB is to be a competitor, rather than someone who balances competing interests.
But we still need lawyers in D.C. Just not in authority.
this bailout has nothing to do with the money supply, which is regulated by the Fed. its all about more control by the federal government over our markets, basically ending what free market we have left. then where will we get credit from? the government.
My point was that the mark to market rule shows an incorrect understanding of markets and capitalism. That’s why it’s creating this havoc. A forced seller is not a willing seller.
The rule is fine for separating the wheat from the chaff when the market isn’t disintegrating, but when the whole market is failing, it viciously drives the downward spiral.
1. I couldn’t help but think of Reagan’s saying about the gov’t: “The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help.’”
2. Alan Keyes anyone? I’m tired of having to vote for the lesser of two evils here. Good grief, we haven’t had one good Republican President in 45 years (take out Eisenhower and we’re forced to look all the way back to T. Roosevelt). We might as well shake things up a bit with the Republicans. The GOP abandoned us, so we should seek life elsewhere. No longer will I allow them to take my vote for granted and do whatever they wish, thinking the whole time I’m right there with them. I just wonder if others have the courage to vote on principle rather than out of fear. Right now we’re playing to not lose rather than to win. There is a difference.
“…all men are…endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, DERIVING THEIR JUST POWERS FROM THE CONSENT OF THE GOVERNED. THAT WHENEVER ANY FORM OF GOVERNMENT BECOMES DESTRUCTIVE TO THESE ENDS, IT IS THE RIGHT OF THE PEOPLE TO ALTER OR ABOLISH IT,AND TO INSTITUTE NEW GOVERNMENT.”
My countrymen, this is where we have been led by our Congress and our President. We are being sold into servitude to Foreign Interests, to the greed and moral vacuousness of Financial CEO’s, to the diseased ethics of our Legislators.
Stand up and with a single voice shout “HELL NO! NO MORE!”
but if you don’t correctly diagnose the problem, and then propose more of the same to ‘fix’ the problem, you just set up an even bigger fall in the future.
its like raising taxes to ‘fix’ social security…
Certainly. But the problem they’ve created is real. Screaming about What They Have Done doesn’t stop the downward spiral. No amount of direct attacks will stop the bailout. Fear will win over anger.
If those of us who oppose the bailout don’t unite behind an alternative, the people will be easily bulldozed into thinking the bailout is the only solution.
I live in the SF Bay Area, but I grew up in Merced CA and still have lots of friends there. Merced is one of the hard hit areas in the foreclosure mess. Why? Builders were given permits to build thousands of houses. Loans were essentially “sign here for free money”. No Social Security number required, no down payment, no verification of income or assets. A HUGE number of these “magic mortgages” went to illegal aliens. Many of these illegals knew very well they couldn’t make the payments, but they didn’t care. When things got rough, the illegals just bailed. Some actually got equity loans and then just returned to Mexico, flush with lots of bucks which will never be paid back.
This is the reality of this mess here in California.
Our state is broke. Our hospitals are going broke and closing. In LA, over 70% of students speak Spanish only when they start school.
This is the reality of illegal immigration in California.
It is going to happen to YOU if this is not stopped now.
There MUST be a new law in this bailout, if it happens, that forbids any loan or mortgage being given to anyone without a SS number, with such numbers being verified through e-verify.
No more Mexican consular ID to open a bank account.
I am sick and tired of this crap. I don’t think the politicians really know how pissed off we are.
They will.
as i said in a post last night, this is all about affirmative action and amnesty. in socal 90% of the foreclosures are illegal aliens, because most of them cannot speak english. to solve this crises they need to abolish the capital gains tax and that would boost the economy and resolve the market issues.
affirmative action for mortgages, that wonderful pc problem we cannot or will not get rid of, well it is time to say NO to affirmative action and forced amnesty.
true, but the best alternative, eliminate SOX, and the community redevelopment act would never be done by the dems, so the best thing to do is nothing.
Roland says:
Therein lies the issue. The people you seem so happy bailing out don’t actually own anything. They own a payment plan. The bank owns the asset – the bank lets them use the asset in return for making payments. Just because you live in a house, does not mean you own it – just because you drive a car does not mean you own it.
Further – credit will ALWAYS be available to those who are creditworthy. Maybe, just maybe, people have been living beyond their means. If you have to borrow money to do something, maybe you need to think long and hard about whether or not you really NEED to do/acquire whatever it is.
It would be nice if you’d read my posts more carefully.
I not happy either way.